Student accounts: the basics
What is a student account?
Student accounts are bank accounts made for those in higher education. They let you pay money in and out, and offer additional benefits such as an interest-free overdraft.
You'll get a debit card, which allows you to pay for things in shops and online without the need to withdraw cash.
What is an overdraft?
An overdraft facility allows you to spend more money than you have in your account, up to a certain limit. Student accounts provide a set level of overdraft interest-free for the duration of your course.
Remember the bank is just lending you this money. It'll need to be paid back, so don't get too comfortable. Always keep in your mind that's it's not actually yours, it's the bank's.
It costs nowt... UNLESS you exceed your overdraft
The cost of banking is measured in terms of interest rates and fees. Interest is the cost of borrowing money, or the reward for saving it. So 3% interest on savings means you earn £3 per £100 per year on the cash.
All of our top pick accounts provide an agreed interest-free overdraft limit. Anything up to that will not be subject to fees or interest - good news.
However, this is all provided you stay within your overdraft limit. Exceeding it can cost up to £25 per transaction, plus interest on top.
Quick questions
When can I open a student bank account?
Usually, to be accepted you'll need a UCAS confirmation letter with an unconditional offer, or, if your offer's conditional, you'll need to have A-Level results that meet that condition.
As soon as you've got these, you can open an account, allowing you extra time to make full use of its benefits before the start of term. But beware, some banks may want a letter or other acknowledgement from the university you'll be attending confirming your place.
If in doubt, call the bank you want an account with and ask what its criteria are.
Do you have the right ID to open an account?
As with all bank accounts, you'll need proof of address and identity. This can include: passport, birth certificate, current UK photocard driving licence or full UK paper licence.
I'm an existing student. Can I switch to a different bank account?
Existing students can switch their account to get the same terms as others in the same year of study. If you're a second or third year student, be sure to check the new account at least matches what you're already being offered (or have) in terms of a 0% overdraft.
Follow this kink for more info>> MORE INFO
|
